The Financial Performance Measures Accounting Essay

During the last old ages, more and more attending is paid to the fillip construction of CEOs of big multinationals. CEO bonuses has become an international issue debated in the parliament and routinely featured in front-page headlines, screen narratives, and telecasting intelligence shows. Several factors have contributed to the widespread involvement in CEO fillips. First, the compensation of CEO has risen aggressively during the last decennaries ( Murphy, 1999 ) . Secondly, some houses in the Netherlands were in existent problem during the fiscal crisis, they needed fiscal aid from the authorities, but their CEOs still got a fillip ( Hooft van Huysduynen, 2011 ) . But since the regulations about CEO compensation were wholly ill-defined for companies which needed fiscal aid from the authorities, more arguments were held in the authorities and regulations were changed often. This contributed to the widespread involvement of the topic of executive compensation in The Netherlands ( de Horde, 2011 ) . And in conclusion, there has besides been an detonation in academic research on executive compensation, which contributed to the rosen involvement of CEO bonus-structure ( Murphy, 1999 ) .CEO compensationThe compensation bundles negotiated with main executive officers ( CEOs ) of big corporations largely contains four basic constituents: a base wage, an one-year fillip tied to accounting public presentation, stock options, and long term inducement programs ( including restricted stock programs and multi-year accounting-based public presentation programs ) ( Murphy, 1999 ) . The incentive constituent frequently is comprised of both an one-year fillip program and a long-run inducement program, where the final payments from these programs depend on an intricate portfolio of public presentation steps ( Bushman et al, 1996 ) . The compensation commission can take different public presentation steps, including stock return, accounting return and non-financial steps, to fin d how much of each signifier of compensation the CEO will gain ( Krolick, 2005 ) . Paying CEOs based on short tally accounting net incomes provides inducements to increase short-term net incomes ( by, for illustration, cutting R & A ; D ) even if making so reduces value in the long tally. Conceptually, the â€Å" perfect † public presentation step for a CEO is the Chief executive officer ‘s personal part to the value of the house. This part includes the consequence that the CEO has on the public presentation of others in the organisation, and besides the effects that the CEO ‘s actions this twelvemonth have on public presentation in future periods. Unfortunately, the CEO ‘s part to tauten value is about ne'er straight mensurable ; the available steps will necessarily except ways that the CEO creates value, and include the effects of factors non due to the attempts of the CEO, or neglect to uncover ways that the CEO destroys value ( Murphy, 2013 ) . A long line of literature has argued that compensation should be related to public presentation. The grounds for the linkage are both normative and positive. In a normative sense, compensation is considered just if it has been †earned † through superior public presentation. In a positive sense, bureau theoreticians argue that associating compensation to tauten public presentation steps provides inducement to increase steadfast value ( Balsam, 2002 ; Lewellen and Huntsman, 1970 ; Murphy, 1985 ) .Fiscal public presentation stepsFiscal public presentation steps consists of steps of hard currency flow, net income, earnings-per-share, gross revenues, economic value added, return on invested capital, return on assets, return on equity, return on gross revenues, stock monetary value return and cost decrease ( Ittner et al, 1997 ) . The literature paperss that i ¬?nancial accounting steps, particularly steps of proi ¬?tability, are extensively used in executive compensation c ontracts. There is grounds of widespread, expressed usage of proi ¬?tability steps in the one-year fillip programs and in the long-run public presentation programs of corporate executives. The inexplicit usage of proi ¬?tability steps in the board of manager ‘s rating and compensation of top oi ¬?cers is supported by a robust, positive statistical relation between proi ¬?tability steps and assorted steps of executive wage, including managerial turnover chances ( Bushman and Smith, 2001 ) . The most of import ground of utilizing fiscal public presentation steps alternatively of utilizing nonfinancial steps, is that fiscal marks are cheaper and easier to mensurate, since all companies are already compulsory to print a balance sheet and an income statement ( Epstein, 2006 ) . Paul ( 1992 ) shows that stock monetary value need non supply efficient inducements in a multi-task scene because monetary value gaining controls the value of the house instead than the value-added by the director. Ittner et Al ( 1997 ) argues that fiscal steps entirely may non supply the most efficient agencies to actuate directors to move in the mode desired by the house ‘s proprietors. While companies use a assortment of fiscal and non-financial public presentation steps in their one-year CEO fillip programs, about all companies rely on some step of accounting net income such as net income, pre-tax income, or operating net income. Accounting net income measured over short intervals is non, nevertheless, a peculiarly good step of the CEOs part to tauten value, for several grounds. First, CEOs routinely make determinations ( such as sequence planning or R & A ; D investings ) that will increase long-term value but non short-term net income. Second, accounting net incomes ( lik e equity-based steps ) are constantly influenced by factors outside of the control of the CEO, including the effects of concern rhythms, universe oil monetary values, natural catastrophes, terrorist onslaughts, etc. Third, while the steps of accounting net incomes typically used in fillip programs take into history both grosss and disbursals, they ignore the chance cost of the capital employed. The usage of these accounting steps provides inducements to put in any undertaking that earns positive accounting net incomes ( non merely those that earn more than the cost of capital ) , and provides no inducements to abandon undertakings gaining positive accounting net incomes that are less than those needed to cover their cost of capital ( Murphy, 2013 ) .Non-financial public presentation stepsNon-financial public presentation steps consists of steps of employee satisfaction, merchandise or service quality, efficiency or productiveness, employee safety, market portion, non-financial strat egic aims, procedure betterments and re-engineering, new merchandise development, invention, employee development and preparation, work force diverseness, leading and client satisfaction ( Ittner et al, 1997 ) . Recent grounds indicates that i ¬?rms are progressively utilizing non-i ¬?nancial public presentation steps such as client satisfaction and merchandise quality in the catching procedure within i ¬?rms ( Ittner et al, 1997 ) . Anterior literature shows that noni ¬?nancial public presentation can counterbalance for â€Å" noise † and â€Å" end incongruence † of i ¬?nancial public presentation steps. Another desirable undertaking property of noni ¬?nancial steps is their ability to foretell future public presentation and to ease intertemporal fiting between current investings and future returns ( Matejka et al. , 2009 ) . Non-financial public presentation steps are assumed to ease the board ‘s appraisal of private managerial information so it ca n more closely supervise the executive decision-making procedure ( Schiehll and Bellavance, 2009 ) . The ground for the usage of non-financial steps in compensation contracts is that they provide information incremental to accounting steps in rewarding and motivation directors ( Davila and Venkatachalam, 2004 ) .Fiscal CrisisPearson and Clair ( 1998 ) developed a definition for organisational crisis ‘ : †An organisational crisis is a low-probability, high-impact event that threatens the viability of the organisation and is characterized by ambiguity of cause, consequence, and agencies of declaration, every bit good as by a belief that determinations must be made fleetly. † Several illustrations of organisational crisis ‘ are: Extortion, Bribery, Hostile coup d'etat, Information sabotage, Terrorist onslaught, Executive kidnaping, Product callback, Natural catastrophe that destroys corporate central offices ( Pearson and Clair, 1998 ) . The fiscal crisis started in September 2008. Assorted causes of the i ¬?nancial crisis have been cited, including slack ordinance over mortgage loaning, a turning lodging bubble, the rise of derived functions instruments such as collateralized debt duties, and questionable banking patterns ( Kothari and Lester, 2012 ) . This research is concentrating on this fiscal crisis, which started in September 2008, and is still go oning at the minute of composing this thesis. Ittner et Al. ( 1997 ) argues that as the noise in fiscal steps increases, houses tend to put more weight on non-financial steps. At the other side, Matejka et Al. ( 2009 ) i ¬?nd that proi ¬?t urgency and i ¬?nancial hurt ( which make i ¬?nancial public presentation steps more congruent with i ¬?rm ends ) are associated with a lower accent on noni ¬?nancial public presentation steps.Hypothesis developmentAlthough old literature us non consistent the usage of non-financial public presentation steps in times of fiscal crisis, more recent research ( Matejka et al. , 2009 ) leads to the premise that the usage of non-financial public presentation steps in CEO fillip contracts will drop during the current fiscal crisis. Based on this premise, the following hypothesis is developed: Hypothesis 1: The usage of non-financial public presentation steps in CEO fillip contracts has been decreased from 2005 to 2010, due to the impact of the fiscal crisis.III. MethodologyThis subdivision describes the research methods used to look into the empirical association between the fiscal crisis and the usage of non-financial public presentation steps. Sample A mark sample of 27 houses is identified from Dutch companies listed on the Amsterdam Exchange Index ( AEX ) at the beginning of the twelvemonth 2013. No differentiation is made between different sectors, all AEX-listed companies were taken in the sample. Data aggregation Data was collected from proxy statements in one-year studies in two different old ages. To mensurate the consequence of the fiscal crisis, the first twelvemonth which had been measured is 2005, since during 2005 no influence of the fiscal crisis could be perceived. The 2nd twelvemonth which is used to roll up informations, is the twelvemonth 2010. 2010 has been chosen because it was in the center of the fiscal crisis and all informations is now available from this twelvemonth. This research surveies the comparative weights placed on fiscal and non-financial public presentation steps in main executive officer ( CEO ) fillip contracts ( Ittner et al, 1997 ) . This method is similar to the method adopted by Ittner et Al ( 1997 ) and used by Schiehll and Bellavance ( 2009 ) . Variables The empirical theoretical account of this research will be as follow: Y = I ± + I?1Xi +I?2Xi Where Y will incorporate the dependant variable usage of non-financial public presentation steps, I?1 will stand for the state of affairs of the usage of a non-financial public presentation step in 2005 ( 0 will stand for the usage of a fiscal public presentation step in 2005, and 1 will stand for the usage of a non-financial public presentation step in 2005 ) , I?2 will stand for the state of affairs of the usage of a non-financial public presentation step in 2010 ( 0 will stand for the usage of a fiscal public presentation step in 2010, and 1 will stand for the usage of a non-financial public presentation step in 2010 ) , and Xi contains the house.

Sample Costs to Produce Processing Tomatoes

TM-SV-08-1 UNIVERSITY OF CALIFORNIA – COOPERATIVE EXTENSION 2008 SAMPLE COSTS TO PRODUCE PROCESSING TOMATOES TRANSPLANTED IN THE SACRAMENTO VALLEY Prepared by: Gene Miyao Karen M. Klonsky Pete Livingston UC Cooperative Extension Farm Advisor, Yolo, Solano, & Sacramento Counties UC Cooperative Extension Specialist, Department of Agricultural and Resource Economics, UC Davis UC Cooperative Extension Staff Research Associate, Department of Agricultural and Resource Economics, UC DavisUC COOPERATIVE EXTENSION SAMPLE COSTS TO PRODUCE PROCESSING TOMATOES TRANSPLANTED In the Sacramento Valley – 2008 CONTENTS INTRODUCTION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2 ASSUMPTIONS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ CULTURAL PRACTICES AND MATERIAL INPUTS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 CASH OVERHEAD †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 NON-CASH OVERHEAD †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ REFERENCES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 TABLE 1. COSTS PER ACRE TO PRODUCE PROCESSING TOMATOES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 TABLE 2. COSTS AND RETURNS PER ACRE TO PRODUCE PROCESSING TOMATOES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 12 TABLE 3.MONTHLY CASH COSTS PER ACRE TO PRODUCE PROCESSING TOMATOES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 TABLE 4. WHOLE FARM ANNUAL EQUIPMENT, INVESTMENT, AND BUSINESS OVERHEAD COSTS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 15 TABLE 5. HOURLY EQUIPMENT COSTS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 TABLE 6. RANGING ANALYSIS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 TABLE 7. COSTS AND RETURNS/ BREAKEVEN ANALYSIS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 19 TABLE 8. DETAILS OF O PERATIONS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 20 INTRODUCTION The sample costs to produce transplanted processing tomatoes in the Sacramento Valley is based on the 2007 cost and returns study practices using 2008 prices and are presented in this study.The price adjustments are for fuel, fertilizers, pesticides, water, labor rates, interest rates, and some cash overhead costs. This study is intended as a guide only, and can be used to make production decisions, determine potential returns, prepare budgets and evaluate production loans. Pr actices described are based on production practices considered typical for the crop and area, but may not apply to every situation. Sample costs for labor, materials, equipment, and custom services are based on current figures.Blank columns, â€Å"Your Costs†, in Tables 1 and 2 are provided to enter actual costs of an individual farm operation. The hypothetical farm operations, production practices, overhead, and calculations are described under the assumptions. For additional information or an explanation of the calculations used in the study, call the Department of Agricultural and Resource Economics, University of California, Davis, (530) 752-2414 or the local UC Cooperative Extension office.Two additional cost of production study for processing tomatoes grown in this region are also available: â€Å"Sample Costs To Produce Processing Tomatoes, Direct Seeded, In the Sacramento Valley – 2007†, and â€Å"Sample Costs To Produce Processing Tomatoes, Transplante d, In the Sacramento Valley – 2007†. Sample Cost of Production Studies for many commodities are available and can be requested through the Department of Agricultural Economics, UC Davis, (530) 752-2414. Current studies can be downloaded from the department website http://coststudies. ucdavis. edu/ or obtained from selected county UC Cooperative Extension offices.The University of California prohibits discrimination or harassment of any person on the basis of race, color, national origin, religion, sex, gender identity , pregnancy (including childbirth, and medical conditions related to pregnancy or childbirth), physical or mental disability , medical condition (cancer-related or genetic characteristics), ancestry, marital status, age, sexual orientation, citizenship, or service in the uniformed services (as defined by the Uniformed Services Employment and Reemployment Rights Act of 1994: service in the uniformed services includes membership, application for membership, performance of service, application for service, or obligation for service in the uniformed services) in any of its programs or activities. University policy also prohibits reprisal or retaliation against any person in any of its programs or activities for making a complaint of discrimination or sexual harassment or for using or participating in the investigation or resolution process of any such complaint. University policy is intended to be consistent with the provisions of applicable State and Federal laws.Inquiries regarding the University’s nondiscrimination policies may be directed to the Affirmative Action/Equal Opportunity Director, University of California, Agriculture and Natural Resources, 1111 Franklin Street, 6th Floor, Oakland, CA 94607, (510) 987-0096. 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 2 ASSUMPTIONS The following assumptions refer to tables 1 to 8 and pertain to sample costs and returns to prod uce transplanted processing tomatoes in the Sacramento Valley. Input prices and interest rates are based on 2008 values. However, production practices were not updated from the 2007 study. Practices described are not recommendations by the University of California, but represent production practices considered typical of a well-managed farm for this crop and area.Some of the costs and practices listed may not be applicable to all situations nor used during every production year and/or additional ones not indicated may be needed. Processing tomato cultural practices and material input costs will vary by grower and region, and can be significant. The practices and inputs used in the cost study serve as a guide only. The costs are shown on an annual, per acre basis. The use of trade names in this report does not constitute an endorsement or recommendation by the University of California nor is any criticism implied by omission of other similar products. Farm. The hypothetical field and row-crop farm consists of 2,900 non-contiguous acres of rented land.Tomatoes are transplanted on 630 acres (70% of the tomato acreage) and direct seeded on 270 acres (30% of the tomato acreage) for a total of 900 acres. Two thousand acres are planted to other rotational crops including alfalfa hay, field corn, safflower, sunflower, dry beans and/or wheat. For direct seeded tomato operations, please refer to the study titled, â€Å"Sample Costs to Produce Processing Tomatoes, Directed Seeded, in the Sacramento Valley – 2007†. The grower also owns various investments such as a shop and an equipment yard. In this report, practices completed on less than 100% of the acres are denoted as a percentage of the total tomato crop acreage.CULTURAL PRACTICES AND MATERIAL INPUTS Land Preparation. Primary tillage which includes laser leveling, discing, rolling, subsoiling, land planing, and listing beds is done from August through early November in the year preceding transplanting. To maintain surface grade, 4% of the acres are laser leveled each year. Fields are stubbledisced and rolled (using a rice roller). Fields are subsoiled in two passes to a 30-inch depth and rolled. A medium-duty disk with a flat roller following is used. Ground is smoothed in two passes with a triplane. Beds on five-foot centers are made with a six-bed lister, and then shaped with a bed-shaper cultivator.Transplanting. Planting is spread over a three-month period (late March through early June) to meet contracted weekly delivery schedules at harvest. The transplants are planted in a single line per bed. Direct seed is for the early season and precedes transplanting. All of the 630 acres are custom planted with greenhouse-grown transplants. Costs for extra seed (15%) purchased to allow for less than 100% germination and for non-plantable transplants are included in the respective categories in Table 2. Fertilization. In the fall, ahead of listing beds, a soil amendment, gypsum at 3. 0 tons per acre is custom broadcast spread on 20% of the acres.After listing, as part of the bed shaping operation, 11-52-0 is shanked into the beds at 100 pounds per acre. Prior to planting, liquid starter fertilizer, 8-24-6 plus zinc, is banded below the seed line at 15 gallons of material per acre. Nitrogen fertilizer, UN-32 at 150 pounds of N per acre is sidedress-banded at layby. Additional N is applied under special needs on 20% of acres as CAN 17 at 100 pounds of product per acre as a sidedress. Irrigation. In this study, water is calculated to cost $31. 92 per acre-foot or $2. 66 per acre-inch and is a combination of 1/2 well water ($47. 67 per acre-foot) and 1/2 canal delivered surface water ($16. 17 per acre-foot).The irrigation costs shown in Tables 1 and 3 include water, pumping, and labor charges. The transplants receive a single sprinkler irrigation after planting. Prior to initial furrow irrigation, fields are all chiseled to 12 inches deep in the furrow. Eight furrow irrigations are applied during the season. In 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 3 this study 3. 5 acre-feet (42 acre-inches) is applied to the crop – 2. 0 acre-inches by sprinkler and 40 acreinches by furrow. Although sub-surface drip irrigation is gaining in popularity, it is not used in this study. Pest Management. The pesticides and rates mentioned in this cost study are listed n Integrated Pest Management for Tomatoes and UC Pest Management Guidelines, Tomato. For more information on other pesticides available, pest identification, monitoring, and management visit the UC IPM website at www. ipm. ucdavis. edu. Written recommendations are required for many pesticides and are made by licensed pest control advisors. For information and pesticide use permits, contact the local county agricultural commissioner's office. Weeds. Beginning in January, Roundup plus Goal is sprayed on the fallow beds to control eme rged weeds and repeated later with Roundup only. Before planting, the beds are cultivated twice to control weeds and to prepare the seedbed.Wilcox Performer conditions bed and applies starter fertilizer. Trifluralin is broadcast sprayed at 1. 0 pint per acre and incorporated with a power mulcher. To control nutsedge, Dual Magnum at 1. 5 pints of product per acre is added to trifluralin as a tank-mix and applied to 30% or 189 acres. Matrix is applied to 80% or 504 acres in an 18-inch band at a rate of 2. 0 ounces of material per acre to control a range of weeds. A combination of hand weeding and mechanical cultivation is also used for weed control. The crop is mechanically cultivated with sled-mounted cultivators three times during the season. A contract labor crew hand removes weeds.Insects and Diseases. The primary insect pests of seedlings included in this study are flea beetle, darkling ground beetle, and cutworm. Foliage and fruit feeders included are tomato fruitworm, various a rmyworm species, russet mite, stinkbug, and potato aphid. Diseases are primarily bacterial speck, late blight, and blackmold fruit rot. A Kocide and Dithane tank mix for bacterial speck is applied to 30% of the acres. All of the above applications are made by ground. The following applications are made by aircraft. Sulfur dust for russet mite control is applied to 70% of the acres. Asana for general insect control is applied to 40% of the acres.Confirm for worm control is applied to 100% of the acres. Bravo is applied in June to 5% of the acres for late blight control and again in September as a fruit protectant fungicide on 15% of the acres. Fruit Ripener. Ethrel, a fruit ripening agent, is applied by ground before harvest to 5% of the acres at 4. 0 pints per acre. Harvest. The fruit is mechanically harvested using one primary harvester for 90% of the acres and one older harvester for special harvest situations and as a backup to the primary harvester. Typically growers with this a creage of processing tomatoes own tractors, trailer dollies, generator-light machines, and harvest support equipment.Four manual sorters, a harvester driver, and two bulk-trailer tractor operators are used per harvester. A seasonal average of 1. 5 loads per hour at 25 tons per load are harvested with two (one day and one night) shifts of 10 hours each. Harvest efficiency includes down time, scheduled daily breaks, and transportation between fields. The processor pays the transportation cost of the tomatoes from the field to the processing plant. Costs for harvest operations are shown in Tables 1, 3 and 7; the equipment used is listed in Tables 4 and 5. If tomatoes are custom harvested, harvest expenses are subtracted from harvest costs in Tables 1 and 3, and the custom harvest charges added.The equipment for harvest operations is then subtracted from investment costs in Table 4. Growers may choose to own harvesting equipment, purchased either new or 2008 Transplanted Processing Toma to Cost and Returns Study Sacramento Valley UC Cooperative Extension 4 used, or hire a custom harvester. Many factors are important in deciding which harvesting option a grower uses. The options are discussed in â€Å"Acquiring Alfalfa Hay Harvest Equipment: A Financial Analysis of Alternatives†. Yields. County average annual tomato crop yields in the Sacramento Valley over the past ten years ranged from 26. 34 to 43. 00 tons per acre. The reporting counties are Colusa, Sacramento, Solano, Sutter, Yolo, and sometimes Glenn counties.Butte and Tehama are the only two Sacramento Valley counties that do not report processing tomatoes. The weighted average yields for the Sacramento Valley from 1997 to 2006 are shown in Table A. In this study, a yield of 35 tons per acre is used. Table A. Sacramento Valley Yield and Price †  Tons $ Year per acre per ton 2006 35. 44 59. 28 2005 34. 30 49. 81 2004 40. 51 48. 06 2003 33. 74 48. 82 2002 37. 64 48. 37 2001 35. 23 48. 49 2000 34. 44 49. 54 1999 34. 58 58. 68 1998 29. 90 53. 68 1997 33. 24 50. 85 Average 34. 90 51. 56 Returns. Customarily, growers produce tomatoes under contract with various food processing companies. County †  Source: California Agricultural Commissioner Crop Reports. verage prices in the Sacramento Valley ranged from $45. 66 to $62. 00 per ton over the last 10 years and the Valley-wide weighted averages are shown in Table A. A price of $70. 00 per ton is used in this study to reflect the return price growers are currently receiving. Assessments. Under a state marketing order a mandatory assessment fee is collected and administered by the Processing Tomato Advisory Board (PTAB). The assessment pays for inspecting and grading fruit, and varies between inspection stations. In Yolo County, inspection fees range from $6. 36 to $8. 90 per load with an average of $6. 75. Growers and processors share equally in the fee; growers pay $3. 38 per load in this study.A truckload is assumed to be 25 to ns. Tomato growers are also assessed a fee for the Curly Top Virus Control Program (CTVCP) administered by the California Department of Food and Agriculture (CDFA). Growers in Yolo County (District 111) are charged $0. 019 per ton. Additionally, several voluntary organizations assess member growers. California Tomato Growers Association (CTGA) represents growers’ interest in negotiating contract prices with processors. CTGA membership charges are $0. 17 per ton. The California Tomato Research Institute funds projects for crop improvement. CTRI membership charges are $0. 07 per ton. Labor. Basic hourly wages for workers are $11. 56 and $8. 0 per hour for machine operators and nonmachine (irrigators and manual laborers) workers, respectively. Adding 36% for the employer’s share of federal and state payroll taxes, insurance and other benefits raises the total labor costs to $15. 72 per hour for machine operators and $10. 88 per hour for non-machine labor. The labor for op erations involving machinery is 20% higher than the field operation time, to account for equipment set up, moving, maintenance, and repair. The current minimum wage is $8. 00 per hour. CASH OVERHEAD Cash overhead consists of various cash expenses paid out during the year that are assigned to the whole farm and not to a particular operation.These costs include property taxes, interest on operating capital, office expense, liability and property insurance, share rent, supervisors’ salaries, field sanitation, crop insurance, and investment repairs. Employee benefits, insurance, and payroll taxes are included in labor costs and not in overhead. Cash overhead costs are shown in Tables 1, 2, 3, and 4. Property Taxes. Counties charge a base property tax rate of 1% on the assessed value of the property. In some counties special assessment districts exist and charge additional taxes on property including equipment, buildings, and improvements. For this study, county taxes are calculat ed as 1% of the average value of the property. Average value equals new cost plus salvage value divided by 2 on a per acre basis. 008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 5 Interest o n Operating Capital. Interest on operating capital is based on cash operating costs and is calculated monthly until harvest at a nominal rate of 6. 75% per year. A nominal interest rate is the typical market cost of borrowed funds. Insurance. Insurance for farm investments varies depending on the assets included and the amount of coverage. Property insurance provides coverage for property loss and is charged at 0. 740% of the average value of the assets over their useful life. Liability insurance covers accidents on the farm and costs $1,438 for the entire farm or $0. 50 per acre. Office Expense.Office and business expenses are estimated to be $50,489 for the entire farm or $17. 41 per acre. These expenses include office supplies, telephones, bookkeeping, accounting, legal fees, road maintenance, office and shop utilities, and miscellaneous administrative expenses. Share Rent. Rent arrangements will vary. The tomato land in this study is leased on a share-rent basis with the landowner receiving 12% of the gross returns. The land rented includes developed wells and irrigation system. Field Supervisors’ Salary. Supervisor salaries for tomatoes, including insurance, payroll taxes, and benefits, and are $94,500 per year for two supervisors.Two thirds of the supervisors’ time is allocated to tomatoes. The costs are $70. 00 per acre. Any returns above total costs are considered returns on risk and investment to management (or owners). Field Sanitation. Sanitation services provide portable toilet and washing facilities for the ranch during the crop season. The cost includes delivery and weekly service. Costs will vary depending upon the crops and number of portable units required. Crop Insurance. The insurance pro tects the grower from crop losses due to adverse weather conditions, fire, unusual diseases and/or insects, wildlife, earthquake, volcanic eruption, and failure of the irrigation system.The grower can choose the protection level at 50% to 75% of production history or county yields. In this study, no level is chosen. The cost shown in the study is the average of the costs paid by the growers who reviewed this study. NON-CASH OVERHEAD Non-cash overhead is calculated as the capital recovery cost for equipment and other farm investments. Although farm equipment used for processing tomatoes may be purchased new or used, this study shows the current purchase price for new equipment. The new purchase price is adjusted to 60% to reflect a mix of new and used equipment. Annual ownership costs (equipment and investments) are shown in Tables 1, 2, and 5.They represent the capital recovery cost for investments on an annual per acre basis. Capital Recovery Costs. Capital recovery cost is the ann ual depreciation and interest costs for a capital investment. It is the amount of money required each year to recover the difference between the purchase price and salvage value (unrecovered capital). It is equivalent to the annual payment on a loan for the investment with the down payment equal to the discounted salvage value. This is a more complex method of calculating ownership costs than straight-line depreciation and opportunity costs, but more accurately represents the annual costs of ownership because it takes the time value of money into account (Boehlje and Eidman).The formula for the calculation of the annual capital recovery costs is; Capital *# && # * ,% Purchase † Salvage( ) %Recovery(/ + ,Salvage ) Interest/ % ( Pr ice Value Value Rate + . ‘ $ , / ‘. Factor +$ 2008 Transplanted Processing Tomato Cost and Returns Study ! Sacramento Valley UC Cooperative Extension 6 Salvage Value. Salvage value is an estimate of the remaining value of an investment at the end of its useful life. For farm machinery the remaining value is a percentage of the new cost of the investment (Boehlje and Eidman). The percent remaining value is calculated from equations developed by the American Society of Agricultural Engineers (ASAE) based on equipment type and years of life. The life in years is estimated by dividing the wear out life, as given by ASAE by the annual hours of use in this operation.For other investments including irrigation systems, buildings, and miscellaneous equipment, the value at the end of its useful life is zero. The salvage value for land is equal to the purchase price because land does not depreciate. The purchase price and salvage value for certain equipment and investments are shown in Table 5. Capital Recovery Factor. Capital recovery factor is the amortization factor or annual payment whose present value at compound interest is 1. The amortization factor is a table value that corresponds to the interest rate and the life of t he equipment. Interest Rate. The interest rate of 4. 25% used to calculate capital recovery cost is the effective long-term interest rate in January 2008.The interest rate is used to reflect the long-term realized rate of return to these specialized resources that can only be used effectively in the agricultural sector. Equipment Costs. Equipment costs are composed of three parts: non-cash overhead, cash overhead, and operating costs. Some of the cost factors have been discussed in previous sections. The operating costs consist of repairs, fuel, and lubrication. The fuel, lube, and repair cost per acre for each operation in Table 1 is determined by multiplying the total hourly operating cost in Table 5 for each piece of equipment used for the selected operation by the hours per acre. Tractor time is 10% higher than implement time for a given operation to account for setup, travel and down time. Repairs, Fuel and Lube.Repair costs are based on purchase price, annual hours of use, tot al hours of life, and repair coefficients formulated by the ASAE. Fuel and lubrication costs are also determined by ASAE equations based on maximum Power-Take-Off horsepower, and fuel type. Prices for on-farm delivery of diesel and unleaded gasoline are $3. 54 and $3. 57 per gallon, respectively. Irrigation System. Irrigation equipment owned by the grower consists of main lines, hand moved sprinklers, portable pumps, V-ditchers, and siphon tubes. Risk. Risks associated with processing tomato production are not assigned a production cost. All acres are contracted prior to harvest and all tonnage-time delivery contracts are assumed to have been met. No excess acres are grown to fulfill contracts.While this study makes an effort to model a production system based on typical, real world practices, it cannot fully represent financial, agronomic and market risks which affect the profitability and economic viability of processing tomato production. Table Values. Due to rounding the totals may be slightly different from the sum of the components. 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 7 REFERENCES American Society of Agricultural Engineers. 2003. American Society of Agricultural Engineers Standards Yearbook. Russell H. Hahn and Evelyn E. Rosentreter (ed. ) St. Joseph, Missouri. 41st edition. Barker, Doug.California Workers’ Compensation Rating Data for Selected Agricultural Classifications as of January 2008. California Department of Insurance, Rate Regulation Branch. Boehlje, Michael D. , and Vernon R. Eidman. 1984. Farm Management. John Wiley and Sons. New York, NY. Blank, Steve, Karen Klonsky, Kim Norris, and Steve Orloff. 1992. Acquiring Alfalfa Hay Harvest Equipment: A Financial Analysis of Alternatives. University of California. Oakland, CA. Giannini Information Series No. 92-1. http://giannini. ucop. edu/InfoSeries/921-HayEquip. pdf. Internet accessed May, 2008. California State Automobile As sociation. 2008. Gas Price Averages 2007 – 2008.AAA Press Room, San Francisco, CA. http://www. csaa. com/portal/site/CSAA/menuitem. 5313747aa611bd4e320cfad592278a0c/? vgnextoid= 8d642ce6cda97010VgnVCM1000002872a8c0RCRD. Internet accessed April, 2008. California State Board of equalization. Fuel Tax Division Tax Rates. http://www. boe. ca. gov/sptaxprog/spftdrates. htm. Internet accessed April, 2008. CDFA-California County Agricultural Commissioners, California Annual Agricultural Crop Reports. 1998 – 2007. California Department of Food and Agricultural, Sacramento, CA. http://www. nass. usda. gov/ca/bul/agcom/indexcac. htm. Internet accessed May, 2008. Energy Information Administration. 2008.Weekly Retail on Highway http://tonto. eia. doe. gov/oog/info/gdu/gasdiesel. asp. Internet accessed April, 2008. Diesel Prices. Integrated Pest Management Education and Publications. 2008. â€Å"UC Pest Management Guidelines, Tomatoes. † In M. L. Flint (ed. ) UC IPM Pest Man agement Guidelines. University of California. Division of Agriculture and Natural Resources. Oakland, CA. Publication 3339. http://www. ipm. ucdavis. edu/PMG/selectnewpest. tomatoes. html. Internet accessed May, 2008. Miyao, Gene, Karen M. Klonsky, and Pete Livingston. 2007. â€Å"Sample Costs To Produce Processing Tomatoes, Transplanted, In the Sacramento Valley – 2007†. University of California, Cooperative Extension.Department of Agricultural and Resource Economics. Davis, CA. http://coststudies. ucdavis. edu/. Internet accessed April, 2008. Miyao, Gene, Karen M. Klonsky, and Pete Livingston. 2007. Sample Costs to Produce Processing Tomatoes, Direct Seeded, in the Sacramento Valley – 2007. University of California, Cooperative Extension. Department of Agricultural and Resource Economics. Davis, CA. http://coststudies. ucdavis. edu/. Internet accessed, April, 2008. 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Exte nsion 8 Statewide Integrated Pest Management Project. 1998. Integrated Pest Management for Tomatoes. Fourth Edition. University of California.Division of Agriculture and Natural Resources. Oakland, CA. Publication 3274. http://www. ipm. ucdavis. edu/PMG/selectnewpest. tomatoes. html. Internet accessed April, 2008. USDA-ERS. 2008. Farm Sector: Farm Financial Ratios. Agriculture and Rural Economics Division, ERS. USDA. Washington, DC. http://usda. mannlib. cornell. edu/reports/nassr/price/zapbb/agpran04. txt; Internet accessed January, 2008. ________________________ For information concerning the above or other University of California publications, contact UC DANR Communications Services at 800994-8849, online at http://anrcatalog. ucdavis. edu/InOrder/Shop/Shop. asp, or your local county UC Cooperative Extension office. 008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 9 Table 1. UC COOPERATIVE EXTENSION COSTS PER ACRE TO PRODUCE TO MATOES SACRAMENTO VALLEY – 2008 TRANSPLANTED Labor Rate: $15. 72/hr. machine labor $10. 88/hr. non-machine labor Interest Rate: 6. 75% Yield per Acre: 35. 0 Ton Operation —————— Cash and Labor Costs per Acre —————–Time Labor Fuel, Lube Material Custom/ Total (Hrs/A) Cost & Repairs Cost Rent Cost 0. 00 0. 14 0. 42 0. 15 0. 36 0. 00 0. 10 0. 25 0. 08 0. 08 0. 26 1. 83 0. 17 0. 33 0. 00 0. 16 3. 00 0. 61 0. 33 0. 25 0. 25 0. 03 0. 04 10. 00 0. 00 0. 04 0. 00 0. 07 0. 00 0. 50 0. 00 0. 00 0. 0 0. 00 0. 32 0. 32 16. 42 0. 10 0. 93 0. 46 1. 49 0. 00 0. 00 0 3 8 3 7 0 2 5 1 1 10 39 3 6 0 3 33 12 6 5 5 1 1 109 0 1 0 1 0 9 0 0 0 0 12 6 212 2 58 32 92 0 0 344 0 18 53 10 22 0 6 12 3 3 19 145 7 13 0 6 0 21 13 15 12 1 2 0 0 2 0 3 0 17 0 0 0 0 8 0 122 4 177 34 215 0 0 482 0 0 0 0 0 79 0 42 12 13 0 146 36 13 354 9 18 0 112 0 0 5 0 107 1 0 15 20 0 0 5 4 27 2 0 0 727 0 0 0 0 14 14 887 7 0 0 0 0 1 0 0 0 0 0 8 0 0 165 0 0 0 0 0 0 0 0 0 0 0 6 0 50 0 3 1 6 0 0 0 231 0 0 0 0 0 0 239 7 20 61 13 29 81 8 59 16 17 28 338 46 33 519 19 51 32 131 20 17 6 3 216 1 3 21 24 50 27 7 4 33 2 20 6 1,292 6 235 66 308 14 14 66 2,017 1 17 0 25 70 294 6 4 6 423 2,440Operation Preplant: Land Preparation – Laser Level – 4% of Acreage Land Preparation – Stubble Disc & Roll Land Preparation – Subsoil & Roll 2X Land Preparation – Disc & Roll Land Preparation – Triplane 2X Land Preparation – Apply Gypsum on 20% of Acreage Land Preparation – List Beds Land Preparation – Shape & Fertilize (11-52-0) Weed Control – Roundup & Goal Weed Control – Roundup Weed Control – Cultivate 2X TOTAL PREPLANT COSTS Cultural: Condition Bed & Starter Fertilizer Mulch Beds & Apply Treflan (& Dual on 30% of Acreage) Transplant Tomatoes Weed Control – Apply Matrix on 80% of Acreage Irrigate – Sprinklers 1X Weed Control – Cultivate 3X Fer tilize – 150 Lbs N Sidedress Chisel Furrows Mulch Beds Disease Control – Bacterial Speck on 30% of Acreage Open Ditches Irrigate – Furrow 8X Disease Control – Late Blight on 5% of Acreage Close Ditches Mite Control – Sulfur on 70% of Acreage Fertilize – 20 Lbs N on 20% of Acreage Weed Control – Hand Hoe – Contract Train Vines Insect Control – Aphid on 40% of Acreage Disease Control – Fruit Rot on 15% of Acreage Insect Control – Worms Fruit Ripener – Ethrel on 5% of Acreage Pickup Truck Use (2 pickups) ATV Use TOTAL CULTURAL COSTS Harvest: Open Harvest Lane on 8% of Acreage Harvest In Field Hauling TOTAL HARVEST COSTS Assessment: Assessments/Fees TOTAL ASSESSMENT COSTS Interest on Operating Capital @ 6. 75% TOTAL OPERATING COSTS/ACRE CASH OVERHEAD: Liability Insurance Office Expense Field Sanitation Crop Insurance Field Supervisors' Salary (2) Land Rent @ 12% of Gross Returns Property Taxes Property I nsurance Investment Repairs TOTAL CASH OVERHEAD COSTS TOTAL CASH COSTS/ACRE Your Cost 008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 10 UC COOPERATIVE EXTENSION Table 1 continued NON-CASH OVERHEAD: Investment Shop Building Storage Building Fuel Tanks & Pumps Shop Tools Booster Pumps Sprinkler Pipe Main Line Pipe – 10†³ Semi Truck & Lowbed Trailer Pipe Trailers Truck-Service – 2 Ton Generators & Light Fuel Wagons Closed Mix System Siphon Tubes Implement Carrier Equipment TOTAL NON-CASH OVERHEAD COSTS TOTAL COSTS/ACRE Per producing Acre 25 10 8 5 21 52 28 12 12 13 3 1 2 4 3 755 953 — Annual Cost -Capital Recovery 2 1 1 0 2 6 3 1 1 3 1 0 0 0 0 94 116 2 1 1 0 2 6 3 1 1 3 1 0 0 0 0 94 116 2,555 008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 11 Table 2. UC COOPERATIVE EXTENSION COSTS and RETURNS PER ACRE to PRODUCE TOMATOES SACRAMENTO VALLEY – 2008 T RANSPLANTED Labor Rate: $15. 72/hr. machine labor $10. 88/hr. non-machine labor Interest Rate: 6. 75% Yield per Acre: 35. 0 Ton Price or Value or Cost/Unit Cost/Acre 70. 00 2,450 2,450 Your Cost Quantity/Acre Unit GROSS RETURNS Processing Tomatoes 35. 00 TOTAL GROSS RETURNS FOR PROCESSING TOMATOES OPERATING COSTS Custom: Laser Level 0. 04 Gypsum Application 0. 20 Transplanting 8. 70 Air Application – Spray 10 Gal/Acre 1. 60 Air Application – Dust 28. 0 Fertilizer: Gypsum 0. 60 11-52-0 100. 00 8-24-6 15. 00 Zinc Chelate 6% 2. 00 UN-32 150. 00 CAN 17 118. 00 Herbicide: Roundup Ultra 2. 50 Goal 2XL 3. 00 Dual Magnum 0. 45 Treflan HFP 1. 00 Matrix DF 0. 48 Seed: Tomato Seed 10. 01 Transplant: Transplants – Growing 8. 70 Irrigation: Water 42. 00 Pump – Fuel, Lube, & Repairs 1. 00 Fungicide: Kocide 101 0. 60 Dithane DF 0. 60 Sulfur, Dust 98% 28. 00 Insecticide: Bravo Weatherstik 0. 60 Warrior T 1. 54 Confirm 12. 00 Contract: Contract Labor 5. 00 Growth Regulato r: Ethrel 0. 03 Assessment: CDFA-CTVP 35. 00 CTGA 35. 00 CTRI 35. 00 PTAB 35. 00 Labor (machine) 9. 34 Labor (non-machine) 18. 08 Fuel – Gas 1. 5 Fuel – Diesel 77. 61 Lube Machinery repair Interest on Operating Capital @ 6. 75% TOTAL OPERATING COSTS/ACRE NET RETURNS ABOVE OPERATING COSTS/ACRE Ton Acre Ton Thou Acre Lb Ton Lb Lb Pint Lb N Lb Pint FlOz Pint Pint Oz Thou Thou AcIn Acre Lb Lb Lb Pint FlOz FlOz Hour Gal Ton Ton Ton Ton Hrs Hrs Gal Gal 165. 00 7. 00 19. 00 6. 25 0. 20 132. 00 0. 419 2. 28 0. 913 0. 745 0. 171 8. 59 1. 03 18. 63 4. 84 19. 25 11. 00 28. 00 2. 67 13. 00 3. 62 3. 89 0. 55 7. 85 3. 05 2. 23 9. 99 63. 00 0. 019 0. 17 0. 07 0. 135 15. 72 10. 88 3. 57 3. 54 7 1 165 10 6 79 42 34 2 112 20 21 3 8 5 9 110 244 112 13 2 2 15 5 5 27 50 2 1 6 2 5 147 197 7 275 42 159 66 2,017 406 008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 12 UC COOPERATIVE EXTENSION Table 2 continued CASH OVERHEAD COSTS: Liability I nsurance Office Expense Field Sanitation Crop Insurance Field Supervisors' Salary (2) Land Rent @ 12% of Gross Returns Property Taxes Property Insurance Investment Repairs TOTAL CASH OVERHEAD COSTS/ACRE TOTAL CASH COSTS/ACRE NON-CASH OVERHEAD COSTS (CAPITAL RECOVERY): Shop Building Storage Building Fuel Tanks & Pumps Shop Tools Booster Pumps Sprinkler Pipe Main Line Pipe – 10†³ Semi Truck & Lowbed Trailer Pipe Trailers Truck-Service – 2 Ton Generators & Light Fuel Wagons Closed Mix SystemSiphon Tubes Implement Carrier Equipment TOTAL NON-CASH OVERHEAD COSTS/ACRE TOTAL COSTS/ACRE NET RETURNS ABOVE TOTAL COSTS/ACRE 1 17 0 25 70 294 6 4 6 423 2,440 2 1 1 0 2 6 3 1 1 3 1 0 0 0 0 94 116 2,555 -105 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 13 Table 3. UC COOPERATIVE EXTENSION MONTHLY CASH COST PER ACRE TO PRODUCE TOMATOES SACRAMENTO VALLEY – 2008 TRANSPLANTED SEP 07 7 20 61 13 29 81 8 59 16 17 28 62 46 3 3 519 19 51 14 20 17 6 2 54 2 54 3 21 24 50 27 7 4 33 2 2 0 42 2 12 6 21 14 14 11 87 OCT 07 NOV 07 DEC 07 JAN 08 FEB MAR 08 08 APR MAY 08 08 JUN 08 JUL AUG 08 08 SEP 08 TOTALBeginning SEP 07 Ending SEP 08 Preplant: Laser Level – 4% of Acreage Land Prep – Stubble Disc & Roll Land Prep – Subsoil & Roll 2X Land Prep – Disc & Roll Land Prep – Triplane 2X Land Prep – Apply Gypsum on 20% of Acreage Land Prep – List Beds Land Prep – Shape Beds & Fertilize Weed Control – Roundup & Goal Weed Control – Roundup Weed Control – Cultivate 2X TOTAL PREPLANT COSTS Cultural: Condition Bed & Starter Fertilizer Mulch Beds & Apply Herbicide Transplant Tomatoes Weed Control – Apply Matrix on 80% of Acreage Irrigate – Sprinklers 1X Weed Control – Cultivate 2X Fertilize – 150 Lbs N – Sidedress Chisel Furrows Mulch Beds Disease Control – Bacterial Speck – 30% of Acreage Open Ditches Irrigate – Furrow 8X Disease Control – Late Blight 5% of Acreage Close Ditches Mite Control – Sulfur 70% of Acreage Fertilize – 20 Lb N 20% of Acreage Weed Control – Hand Hoe Train Vines Insect Control – Aphids 40% of Acreage Disease Control – Fruit Rot 15% of Acreage Insect Control – Worms – Confirm Fruit Ripener – Ethrel 5% of Acreage Pickup Truck Use (2 pickups) ATV Use TOTAL CULTURAL COSTS Harvest: Open Harvest Lane 8% of Acreage Harvest In Field Hauling TOTAL HARVEST COSTS Assessment: Assessments/Fees TOTAL ASSESSMENT COSTS Interest on Operating Capital @ 6. 5% TOTAL OPERATING COSTS/ACRE OVERHEAD: Liability Insurance Office Expense Field Sanitation Crop Insurance Field Supervisors' Salary (2) Land Rent @ 12% of Gross Returns Property Taxes Property Insurance Investment Repairs TOTAL CASH OVERHEAD COSTS TOTAL CASH COSTS/ACRE 210 67 7 20 61 13 29 81 8 59 16 17 28 338 46 33 519 19 51 32 131 20 17 6 3 216 1 3 21 24 50 27 7 4 33 2 20 6 1,292 6 235 66 308 14 14 66 2,017 1 17 0 25 70 294 6 4 6 423 2,440 7 131 10 54 54 1 2 0 2 2 0 2 2 0 2 2 0 2 2 0 48 2 0 2 2 0 35 2 0 686 2 0 211 2 0 57 2 0 200 2 111 31 144 2 0 2 2 111 29 143 1 213 2 70 2 4 2 4 2 112 1 1 0 25 5 2 4 2 37 6 693 7 219 8 65 10 354 11 155 1 0 5 1 0 5 1 0 5 1 0 5 1 0 5 3 2 0 12 16 1 0 5 1 0 5 1 0 5 1 0 5 1 0 5 3 2 0 12 367 1 0 5 1 0 5 294 0 7 220 0 7 78 0 7 11 0 7 11 0 33 145 0 7 44 0 7 700 0 7 226 0 7 72 0 7 162 301 388 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento ValleyUC Cooperative Extension 14 Table 4. UC COOPERATIVE EXTENSION WHOLE FARM ANNUAL EQUIPMENT, INVESTMENT, AND BUSINESS OVERHEAD COSTS SACRAMENTO VALLEY – 2008 TRANSPLANTED ANNUAL EQUIPMENT COSTS – Cash Overhead Insurance Taxes 318 430 331 448 477 645 828 1,118 1,060 1,433 211 285 17 24 58 78 45 60 22 30 132 178 58 79 22 29 245 330 195 263 36 49 209 283 1,265 1,710 99 134 91 123 72 97 72 97 9 12 62 83 62 83 35 47 10 14 10 14 10 14 10 14 9 12 175 236 6 8 6 8 6 8 6 8 97 131 70 94 20 26 6,465 8,737 3,879 5,242 Description 110 HP 2WD Tractor 130 HP 2WD Tractor 155 HP 2WD Tractor 200 HP Crawler 425 HP Crawler 92 HP 2WD Tractor ATV Bed Shaper – 3 Row Cultivator –Alloway 3 Row Cultivator – Perfecta 3 Row Cultivator – Performer 3 Row Cultivator – 3 Row Cultivator – Sled 3 Row Disc – Stubble 18†² Disc – Finish 25†² Ditcher – V Harvester Tomato – Used Harvester -Tomato Lister – 3 Row Mulcher – 15†² Pickup Truck – 1/2 Ton Pickup Truck – 3/4 Ton Rear Blade – 8†² Rice Roller – 18†² Flat Roller – 18†² Ringroller – 30†² Saddle Tank – 300 Gallon Saddle Tank – 300 Gallon Saddle Tank – 300 Gallon Saddle Tank – 300 Gallon Spray Boom – 25†² Subsoiler – 16†² – 9 Shank Trailer Dolly Trailer Dolly Trailer Dolly Trai ler Dolly Triplane – 16†² Vine Diverter Vine Trainer TOTAL 60% of New Cost * * Used to reflect a mix of new and used equipment. Yr 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 Price 66,445 69,163 99,594 172,650 221,197 44,015 4,017 13,292 10,236 5,100 30,281 11,868 4,980 49,847 44,743 8,631 46,108 331,980 20,176 20,507 17,655 17,655 2,269 14,139 14,139 7,952 2,374 2,374 2,374 2,374 1,781 35,605 1,451 1,451 1,451 1,451 22,253 16,046 4,800 1,444,424 866,654 Yrs Life 10 10 10 10 10 10 10 10 10 10 10 5 10 5 10 12 8 8 5 9 7 7 15 10 10 10 10 10 10 10 5 5 15 15 15 15 10 10 10Salvage Value 19,627 20,430 29,418 50,998 65,338 13,001 710 2,351 1,810 902 5,355 3,866 881 16,237 7,912 1,195 10,411 10,000 6,572 4,098 1,766 1,766 218 2,500 2,500 1,406 420 420 420 420 580 11,598 139 139 139 139 3,935 2,838 480 302,935 181,761 Capital Recovery 6,678 6,952 10,010 17,353 22,233 4,424 443 1,466 1,129 562 3,339 1,974 549 8,293 4,934 855 5,799 48,743 3,357 2,406 2,747 2,747 197 1,559 1,559 877 262 262 262 262 296 5,923 126 126 126 126 2,454 1,769 560 173,739 104,243 Total 7,427 7,731 11,133 19,299 24,726 4,920 484 1,602 1,234 615 3,649 2,111 600 8,868 5,392 940 6,291 51,718 3,589 2,620 2,916 2,916 219 1,704 1,704 958 286 286 286 286 317 6,334 140 140 140 140 2,682 1,934 606 188,941 113,364 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 15UC COOPERATIVE EXTENSION Table 4 continued ANNUAL INVESTMENT COSTS —— Cash Overhead —–Insurance Taxes Repairs 243 18 89 9 31 40 328 132 147 294 59 45 614 118 157 2,325 329 24 121 12 42 54 444 178 199 397 80 61 830 160 212 3,142 1,643 221 439 44 210 487 2,219 700 531 722 145 313 4,152 586 3,860 16,272 Description INVESTMENT Booster Pumps Closed Mix System Fuel Tanks & Pumps Fuel Wagons Generators & Light Implement Carrier Main Line Pipe – 10†³ Pipe Trailers Semi Truck & Lowb ed Trailer Shop Building Shop Tools Siphon Tubes Sprinkler Pipe Storage Building Truck-Service – 2 Ton TOTAL INVESTMENT Price 59,757 4,412 21,949 2,186 7,620 9,742 80,676 35,000 36,170 72,168 14,465 11,066 150,980 29,112 38,600 573,903Yrs Life 10 10 20 10 5 15 10 10 15 25 20 15 10 20 5 Salvage Value 5,976 441 2,195 219 762 974 8,068 700 3,617 7,217 1,447 1,107 15,098 2,911 3,860 54,592 Capital Recovery 6,967 514 1,579 255 1,584 844 9,407 4,311 3,133 4,575 1,041 958 17,604 2,095 8,022 62,889 Total 9,182 778 2,228 320 1,867 1,424 12,398 5,322 4,010 5,988 1,324 1,377 23,201 2,959 12,252 84,629 ANNUAL BUSINESS OVERHEAD Units/ Farm 900 2,900 900 900 2,900 2,900 Price/ Unit 25. 00 0. 48 70. 00 294. 00 0. 50 17. 41 Total Cost 22,500 1,392 63,000 264,600 1,450 50,489 Description Crop Insurance Field Sanitation Field Supervisors' Salary (2) Land Rent @ 12% of Gross Returns Liability Insurance Office ExpenseUnit Acre Acre Acre Acre Acre Acre 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 16 Table 5. UC COOPERATIVE EXTENSION HOURLY EQUIPMENT COSTS SACRAMENTO VALLEY – 2008 TRANSPLANTED ——————- COSTS PER HOUR —————————- Cash Overhead ——– Operating ——-InsurFuel & Total Total ance Taxes Repairs Lube Oper. Costs/Hr. 0. 13 0. 18 3. 12 25. 99 29. 11 32. 20 0. 17 0. 22 3. 25 30. 71 33. 96 37. 82 0. 24 0. 32 4. 67 36. 62 41. 29 46. 86 0. 31 0. 42 4. 63 47. 25 51. 88 59. 12 0. 40 0. 54 5. 93 100. 40 106. 33 115. 61 0. 11 0. 14 2. 06 30. 71 32. 77 35. 24 0. 05 0. 07 1. 09 0. 0 1. 09 2. 54 0. 17 0. 24 2. 87 0. 00 2. 87 7. 69 0. 13 0. 18 2. 21 0. 00 2. 21 5. 92 0. 07 0. 09 1. 05 0. 00 1. 05 2. 90 0. 35 0. 47 6. 25 0. 00 6. 25 15. 98 0. 07 0. 09 2. 68 0. 00 2. 68 5. 05 0. 03 0. 05 1. 08 0. 00 1. 08 2. 03 0. 37 0. 50 8. 52 0. 00 8. 52 21. 85 0. 59 0. 79 7. 43 0. 00 7. 43 23. 64 0. 13 0. 18 2. 42 0. 00 2. 42 5. 84 0. 63 0. 85 2. 08 61. 07 63. 15 82. 07 1. 09 1. 47 124. 44 61. 07 185. 51 229. 90 0. 15 0. 21 4. 24 0. 00 4. 24 9. 76 0. 15 0. 20 2. 36 0. 00 2. 36 6. 67 0. 16 0. 22 1. 27 11. 97 13. 24 19. 81 0. 16 0. 22 1. 27 11. 97 13. 24 19. 81 0. 04 0. 06 0. 31 0. 00 0. 31 1. 30 0. 19 0. 25 1. 63 0. 00 1. 63 6. 76 0. 14 0. 9 1. 63 0. 00 1. 63 5. 52 0. 10 0. 14 0. 91 0. 00 0. 91 3. 79 0. 03 0. 04 0. 64 0. 00 0. 64 1. 47 0. 13 0. 17 0. 64 0. 00 0. 64 4. 14 0. 05 0. 07 0. 64 0. 00 0. 64 2. 00 0. 02 0. 02 0. 64 0. 00 0. 64 1. 07 0. 02 0. 02 0. 49 0. 00 0. 49 1. 12 0. 26 0. 35 8. 32 0. 00 8. 32 17. 83 0. 01 0. 01 0. 11 0. 00 0. 11 0. 28 0. 01 0. 01 0. 11 0. 00 0. 11 0. 28 0. 01 0. 01 0. 11 0. 00 0. 11 0. 28 0. 01 0. 01 0. 11 0. 00 0. 11 0. 28 0. 16 0. 21 3. 43 0. 00 3. 43 7. 74 0. 17 0. 23 2. 78 0. 00 2. 78 7. 57 0. 04 0. 05 2. 88 0. 00 2. 88 4. 03 Yr 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 Description 110 HP 2WD Tractor 130 HP 2WD Tractor 155 HP 2WD Tractor 200 HP Crawler 425 HP Crawler 92 HP 2WD Tractor ATV Bed Shaper – 3 Row Cultivator – Alloway 3 Row Cultivator – Perfecta 3 Row Cultivator – Performer 3 Row Cultivator – 3 Row Cultivator – Sled 3 Row Disc – Stubble 18†² Disc – Finish 25†² Ditcher – V Harvester Tomato – Used Harvester -Tomato Lister – 9 Row Mulcher – 15†² Pickup Truck – 1/2 Ton Pickup Truck – 3/4 Ton Rear Blade – 8†² Rice Roller – 18†² Flat Roller – 18†² Ringroller – 30†² Saddle Tank – 300 Gallon Saddle Tank – 300 Gallon Saddle Tank – 300 Gallon Saddle Tank – 300 Gallon Spray Boom – 25†² Subsoiler – 16†² – 9 Shank Trailer Dolly Trailer Dolly Trailer Dolly Trailer Dolly Triplane – 16†² Vine Diverter Vine Trainer Actual Hours Capital Used Recovery 1,443. 2 2. 78 1,200. 0 3. 48 1,199. 3 5. 01 1,599. 4 6. 51 1,599. 8 8. 34 1,199. 2 2. 21 199. 5 1. 33 199. 5 4. 41 199. 8 3. 39 199. 8 1. 69 225. 1 8. 90 533. 0 2. 22 380. 0. 87 399. 2 12. 46 199. 5 14. 84 165. 2 3. 10 199. 4 17. 45 699. 0 41. 84 390. 0 5. 16 365. 4 3. 95 266. 5 6. 18 266. 5 6. 18 132. 2 0. 89 199. 2 4. 70 262. 5 3. 56 199. 5 2. 64 206. 6 0. 76 49. 1 3. 20 126. 0 1. 25 401. 9 0. 39 299. 4 0. 59 399. 5 8. 90 499. 6 0. 15 499. 7 0. 15 499. 3 0. 15 499. 7 0. 15 373. 8 3. 94 241. 9 4. 39 315. 0 1. 07 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 17 Table 6. UC COOPERATIVE EXTENSION RANGING ANALYSIS SACRAMENTO VALLEY – 2008 TRANSPLANTED COSTS PER ACRE AT VARYING YIELDS FOR PROCESSING TOMATOES YIELD (TONS/ACRE) 26. 0 29. 0 32. 0 35. 0 38. 0 41. OPERATING COSTS/ACRE: Preplant Cost 338 338 338 338 338 338 Cultural Cost 1292 1,292 1,292 1,292 1,292 1,292 Harvest Cost 228 255 281 308 334 36 0 Assessment Cost 14 14 14 14 14 14 Interest on Operating Capital TOTAL OPERATING COSTS/ACRE TOTAL OPERATING COSTS/TON CASH OVERHEAD COSTS/ACRE TOTAL CASH COSTS/ACRE TOTAL CASH COSTS/TON NON-CASH OVERHEAD COSTS/ACRE TOTAL COSTS/ACRE TOTAL COSTS/TON 65 1937 74 422 2359 91 113 2472 95 65 1,964 68 422 2,386 82 114 2,500 86 65 1,990 62 423 2,413 75 115 2,528 79 66 2,017 58 423 2,440 70 116 2,555 73 66 2,044 54 423 2,466 65 117 2,583 68 66 2,071 51 423 2,493 61 117 2,611 64 44. 0 338 1,292 387 14 67 2,097 48 423 2,520 57 118 2,638 60NET RETURNS PER ACRE ABOVE OPERATING COSTS FOR PROCESSING TOMATOES PRICE YIELD (DOLLARS/TON) (TONS/ACRE) Processing Tomatoes 26. 0 29. 0 32. 0 35. 0 38. 0 41. 0 44. 0 55. 00 -507 -369 -230 -92 46 184 323 60. 00 -377 -224 -70 83 236 389 543 65. 00 -247 -79 90 258 426 594 763 70. 00 -117 66 250 433 616 799 983 75. 00 13 211 410 608 806 1,004 1,203 80. 00 143 356 570 783 996 1,209 1,423 85. 00 273 501 730 958 1,186 1,414 1,643 NET RETURNS PER ACRE ABOVE CASH COS TS FOR PROCESSING TOMATOES PRICE YIELD (DOLLARS/TON) (TONS/ACRE) Processing Tomatoes 26. 0 29. 0 32. 0 35. 0 38. 0 41. 0 44. 0 55. 00 -929 -791 -653 -515 -376 -238 -100 60. 00 -799 -646 -493 -340 -186 -33 120 65. 0 -669 -501 -333 -165 4 172 340 70. 00 -539 -356 -173 10 194 377 560 75. 00 -409 -211 -13 185 384 582 780 80. 00 -279 -66 147 360 574 787 1,000 85. 00 -149 79 307 535 764 992 1,220 NET RETURNS PER ACRE ABOVE TOTAL COSTS FOR PROCESSING TOMATOES PRICE YIELD (DOLLARS/TON) (TONS/ACRE) Processing Tomatoes 26. 0 29. 0 32. 0 35. 0 38. 0 41. 0 44. 0 55. 00 -1,042 -905 -768 -630 -493 -356 -218 60. 00 -912 -760 -608 -455 -303 -151 2 65. 00 -782 -615 -448 -280 -113 54 222 70. 00 -652 -470 -288 -105 77 259 442 75. 00 -522 -325 -128 70 267 464 662 80. 00 -392 -180 32 245 457 669 882 85. 00 -262 -35 192 420 647 874 1,102 2008 Transplanted Processing Tomato Cost and Returns StudySacramento Valley UC Cooperative Extension 18 Table 7. UC COOPERATIVE EXTENSION COSTS AND RETURNS/ BREAKEVEN AN ALYSIS SACRAMENTO VALLEY – 2008 TRANSPLANTED COSTS AND RETURNS – PER ACRE BASIS 1. Gross Returns Crop Processing Tomatoes 2,450 2,017 2. Operating Costs 3. Net Returns Above Oper. Costs (1-2) 433 4. Cash Costs 2,440 5. Net Returns Above Cash Costs (1-4) 10 6. Total Costs 2,555 7. Net Returns Above Total Costs (1-6) -105 COSTS AND RETURNS – TOTAL ACREAGE 1. Gross Returns Crop Processing Tomatoes 1,543,500 2. Operating Costs 1,270,748 3. Net Returns Above Oper. Costs (1-2) 272,752 4. Cash Costs 1,536,994 5. Net Returns Above Cash Costs (1-4) 6,506 6.Total Costs 1,609,965 7. Net Returns Above Total Costs (1-6) -66,465 BREAKEVEN PRICES PER YIELD UNIT Base Yield (Units/Acre) 35. 0 Yield Units Ton ——– Breakeven Price To Cover ——-Operating Cash Total Costs Costs Costs ———— $ per Yield Unit ———–57. 63 69. 70 73. 01 CROP Processing Tomatoes BREAKEVEN YIELDS PER ACRE Yield Units Ton Base Price ($/Unit) 70. 00 ——– Breakeven Yield To Cover ——-Operating Cash Total Costs Costs Costs ———– Yield Units / Acre ———-28. 8 34. 9 36. 5 CROP Processing Tomatoes 2008 Transplanted Processing Tomato Cost and Returns Study Sacramento Valley UC Cooperative Extension 19 Table 8.UC COOPERATIVE EXTENSION DETAILS OF OPERATIONS SACRAMENTO VALLEY – 2008 TRANSPLANTED Operation Laser Level – 4% Of Acreage Land Prep – Stubble Disc & Roll Land Prep – Subsoil & Roll 2X Land Prep – Disc & Roll Land Prep – Triplane 2X Land Prep – Apply Gypsum on 20% of Acreage Land Prep – List Beds Land Prep – Shape Beds & Fertilize Weed Control – Roundup & Goal Weed Control – Roundup Weed Control – Cultivate 2X Condition Beds & Apply Starter Fertilizer Power Mulch & Apply Herbicides – Treflan (& Dual on 30% of Acreage) Transplant Toma toes Operation Month September September Tractor/ Power Unit Custom 425 HP Crawler Implement Laser Level Disc – Stubble 18†² Rice Roller – 18†² Subsoiler – 16†² – 9 Shank Disc – Finish 25†² Ringroller – 30†² Triplane – 16†² Broadcast Material Material Rate/Acre Unit 0. 04 Acre September 425 HP Crawler 200 HP Crawler September 200 HP Crawler September Gypsum Application October October January January January 200 HP Crawler 155 HP 2WD Tractor 130 HP 2WD Tractor 130 HP 2WD Tractor 110 HP 2WD Tractor 92 HP 2WD Tractor 110 HP 2WD Tractor 130 HP 2WD Tractor CustomGypsum Lister – 9 Row Bed Shaper – 3 Row Saddle Tank – 300 Gallon Saddle Tank – 300 Gallon Spray Boom – 25†² Saddle Tank – 300 Gallon Spray Boom – 25†² Cultivator – Alloway 3 Row Cultivator – Perfecta 3 Row Cultivator – Performer 3 Row Mulcher – 15†² Saddle Tan k – 300 Gallon 0. 20 Ton 11-52-0 Zinc Chelate Roundup Ultra Goal 2 XL Roundup Ultra 100. 00 2. 00 1. 00 3. 00 1. 50 Lb Pint Pint FlOz Pint January March April Weed Control – Apply Matrix on 80% of Acreage Irrigate – Sprinklers 1X Weed Control – Cultivate 3X April April April April May May April May April April July April May June July June 130 HP 2WD Tractor Fertilize – 150 Lbs N Sidedress Chisel Furrows Mulch Beds Disease Control – Bacterial Speck – on 30% of Acreage Open Ditches Irrigate – Furrow 8X 10 HP 2WD Tractor 110 HP 2WD Tractor 110 HP 2WD Tractor 130 HP 2WD Tractor 200 HP Crawler 155 HP 2WD Tractor 130 HP 2WD Tractor 200 HP Crawler 200 HP Crawler Saddle Tank – 300 Gallon Cultivator – Sled 3 Row Labor Cultivator – Sled 3 Row Cultivator – Sled 3 Row Cultivator – 3 Row Cultivator – Sled 3 Row Saddle Tank – 300 Gallon Cultivator – 3 Row Cultivator – Sled 3 Row Saddle Tank – 300 Gallon Ditcher – V Ditcher – V Labor Labor Labor Labor 8-24-6 Treflan HFP Dual Magnum Tomato Seed Transplants – Growing Transplanting Matrix DF Water 15. 00 1. 00 0. 45 10. 44 8. 70 8. 70 0. 48 2. 00 Lb Pint Pint Thou Thou Thou Oz AcIn UN-32 150. 00 Lbs N Kocide 101 Dithane DF 0. 60 0. 60 Lb Lb Disease Control – Late Blight on 5% of Acreage Close DitchesAir Application Spray 200 HP Crawler 200 HP Crawler Air Application Dust 130 HP 2WD Tractor Contract Labor 110 HP 2WD Tractor Air Application Spray Rear Blade – 8†² Rear Blade – 8†² Cultivator – Sled 3 Row Saddle Tank – 300 Gallon Vine Trainer Water Water Water Water Bravo Weatherstik 10. 00 10. 00 10. 00 10. 00 0. 15 AcIn AcIn AcIn AcIn Pint July July Mite Control – Sulfur on 70% of Acreage July Fertilize – 20 Lbs N on 20% of Acreage July Weed Control – Hand Hoe Train Vines Insect Control – Aphids on 40% of Acreage Disease Control – Fruit Rot on 15% of Acreage Insect Control – Worms Fruit Ripener – Ethrel on 5% of Acreage Open Harvest Lane on 8% of Acreage July July July Sulfur, Dust 98% CAN 17 Labor Warrior T Bravo Weatherstik Confirm 28. 00 118. 00 5. 00 1. 54 0. 45 12. 00 0. 03

Business Ethics And Globalization : Business Essay -- Business ethics, E

In recent years many policy makers, business executives, and economists have argued for the necessity of global business in promoting economic development and reducing world poverty. "Multinational corporations, the world trade organization, the G8 summit and various international financial institutions are supposed to advance free trade and promote economic development for the people of various participating countries, including those who are less developed" (Ho, 2004) In a number of different ways the increased globalization of the economies of the United States, Western Europe, and Japan is making business practices more uniform. The structure and organization of firms, manufacturing technologies, the social organization of production, customer relations, product development, and marketing are all becoming increasingly similar throughout the advanced industrial economies. â€Å"One might logically think that a similar trend would be taking place with respect to the principles and practices of business ethics, however this is not the case† (Vogel, 1992). Despite the advances made in the way the world conducts business, business ethics has not yet globalized; the norms of ethical behavior continue to vary widely from country to the next. During the last decade, highly publicized incidents of misconduct on the part of business managers have occurred in virtually every major industrial economy of the world, as well as nearly every industrial nation in the world. Globalization will continue to be a challenge to business ethics because globalization reduces the amount of discretion that both individuals and business organizations have in making business decisions. Globalization also brings increased compeaspects of management course. The authors found that after the students took that course "there was a statistically significant change in perceptions that suggest that knowledge of the law can prompt managers to become more legally compliant and more socially responsible" (Bagley, Clarkson, Power, 2010) Similarly, the authors of Ethic Perception: Does Teaching Make a Difference found in a study of three hundred and forty undergraduate business students that learning in ethical judgement will lead the students to more ethical intentions (Nguyen, Basuray, Smith, Kopka, McCulloh, 2008). These findings suggest that students should be required to attend an ethics course as part of a business curriculum, that way when presented with real life situations of ethical ambiguity the students will be better equipped to make the correct choice. Business Ethics Implementation

The factors that affect the likelihood and sustainability of collusion Essay

The factors that affect the likelihood and sustainability of collusion in a specific industry - Essay Example Fundamentally, collusion is aimed at restricting or distorting competition within the market that the firms in that industry serve, and thereby reap the benefit of high and uncontrolled profitability. Therefore, this analysis seeks to establish the factors that affect the likelihood of collusion within the Air Travel Industry, and how such collusion is sustainable. Factors that affect the likelihood of collusion and sustainability in the Air Travel Industry Hypothetical Case: Air Canada and West Jet have been accused in colluding on fares on direct flights from Edmonton to Fort McMurray. The Air Travel Industry is an industry that is fairly competitive, considering that there are various airlines that operate within any given country or region, thus making the business of air travel fairly competitive3. Nevertheless, the Air Travel Industry also presents the opportunity for creating a monopoly or an oligopoly, considering that it is an industry that has low number of players. ... Therefore, there are high barriers to the entry for new firms, considering that economic barriers such as the high cost of entry prevent investors from being able to enter the Air Travel Industry4. Thus, barriers to entry form one of the structural features of the market and industry that make collusion more common and sustainable in this industry. The market and industry structure of Air Travel entails a high initial cost of entry, because purchasing and licensing an aircraft to be used for Air Travel purposes is a costly affair, in addition to the legal barriers that are brought about by the government tight control of the industry5. Further, the Air Travel Industry depends highly ion the benefits of the economies of scale in order to survive and thrive to profit earning levels, which requires that the firm operating in the industry should have several aircraft that operates in different destinations, both locally and internationally, to ensure that the route that earns low profits is compensated for, by the one earning high profits, thus the average profitability of the firm becomes substantial6. This is an aspect that serves to reduce the threat of new entrants, since the new entrants will be required to purchase several aircrafts, and undergo the restrictive government legislation procedures in order to finally enter into the industry, thus making the threat of competition low7. It is this low threat of competition that serves as an incentive to encourage the collusion between the few firms that have managed to operate in the industry, and thus make such collusion sustainable, considering that virtually all the firms operating in this industry have overcome the market challenges involved, and thus no single firm

The Internet In Everyday Life Research Paper Example | Topics and Well Written Essays - 2000 words

The Internet In Everyday Life - Research Paper Example The United Kingdom also contributed to the development of the internet. No exact date is particularized when the internet came into being. It is estimated that from early to mid of 1980 internet was well established. From that point in time, the network of internet experiences continuous exponential growth with its connection with personal, institutional computer or mobile. The funding of many private organizations and U.S made the commercial backbone strong for the development of networking technologies with the merge of several networks. From the very beginning, the academic sector is widely using the internet. The commercialization of the internet resulted in incorporation and popularization of all the aspects of human life. Presently the use of internet has been so popular that more than 2.4 billion people of the world are experiencing these networking technologies. This case study is based on the research question that the use of the internet should be restricted or not. The thesis of this research paper is that internet is introduced for all people. It is made available to all. But restricting the internet, it creates barriers to the purpose of introducing it. The objective of this research paper is to focus on the advantage and benefits of the internet. The contribution of the internet in developing the world is also highlighted here. The Internet has numerous advantages with some major disadvantages. This research paper aims to establish the fact that restrictions of internet usage will hamper the growth and development of many things which are associated with various aspects of human life and professions. According to the authors Samuel J. Best, Andrew Smith, Clark Hubbard, Brian Krueger internet is very popular in data collection as it solves complex questions for making quick administration, flexibility.

International Management Assignment Example | Topics and Well Written Essays - 2000 words

International Management - Assignment Example The market was one of rising costs, reduced prices, high competition, and low-cost models. The average selling prices were down by a whopping 35% and there was a clamor for cheaper models in emerging economies and developing markets. The basic phones were available for $ 50, with low end models being available for as low as $ 25 and even $ 10. Multinational set up operations and set new standards for wages, training and technology transfer. An environment of meritocracy was being created and which hard work, ethical behavior and a desire to learn were the watchwords. The fall of the iron curtain in Europe and the transition of State Societies, opened up new markets for Western Europe. Eastern Europe was expected to move towards 100% penetration levels in 2011, from the current 85%. The manufacturing process was being off shored to low cost countries, lately Eastern Europe. Labor costs much lower in Central European Countries than in other Western European Nations. Additionally, they also offered huge advantages in terms of high productivity and simple taxes. However, of late, wage costs were on the rise and labor force was beginning to shrink with people migrating to richer European nations like Britain and Germany. There are three levels of strategy – Corporate Strategy, Business Strategy and Functional Strategy. The corporate strategy deals with the vision and mission of an organization. The Mission of Nokia is â€Å"Connecting people†. Its strategic intention is to â€Å"Build great mobile products†. The word â€Å"Nokia† is named after the Nokia river in Southern Finland. Beginning as early as in 1865 and with a rich history of a century and half of innovation, Nokia transformed itself from a riverside paper mill in Southern Finland to a global telecommunications leader. A conglomerate of paper, rubber, cable and electrical companies, it was only in 1996 that Nokia turned its focus on the telecommunications business. This was an important strategic shift and by 1998, Nokia was the world leader in mobile industry. Its new strategy drive includes changes in leadership and manufacturing specialized products. Its recent strategic direction has taken multi-faceted dimensions : Broad strategic partnership with Microsoft Renew group to capture volumes and value growth Forward investments in next generation technologies Focus on specialized products. The business strategy talks about the strategies related to a specific business of an organization. More specifically, they deal with its products, markets and competitive advantages. Nokia had always prided itself on innovation, differentiation and in building great products through continuous investments in research and development. It does not shy away from investments as well as divestments and focuses on shareholder value by concentrating on core competencies. It always had the larger picture in mind and its decisions were based on global operations and internatio nal strategy and not country-focused. Adapting itself beautifully to global trends, Nokia increased its market presence in China, India, Germany, Indonesia and Russia. It slowly extricated itself form markets like Brazil, Spain and Italy. In 2008, Nokia was the

Gender and Culture Essay Example | Topics and Well Written Essays - 1500 words

Gender and Culture - Essay Example This tendency was mostly drawn from the ancestral parents who used to be disciplinarians on their families. Through the frequent harsh and physical punishments, in the later days, the children develop to be resilient to their parents. The children normally have no right of negotiation but to follow their parents’ instructions (Shaw & Tuch, 2007).   The African Americans mostly use commands and punishments in order to instill discipline on their kids as compared to counseling and negotiations like the majority of other ethnic parents. Child beating is usually seen as the appropriate way of correcting the child in case of disobedience, than just talking. These methods originate from the ancient beliefs of instilling independence among the children, molding spiritual wellbeing, emphasis on the extended and family relationships, self racial pride and perseverance in times of hardships (Shaw & Tuch, 2007).   However, most of the defiant children come from the African American families. That can clearly be proved by relatively high numbers of them receiving social support from friends and extended families and high numbers of the homeless children. Despite the setbacks and no matter how wealthy the African American parents are, they still push their kids to achieve more. Through the tough love, the children learn to be emotionally strong even in times of hardships (Shaw & Tuch, 2007).   The extended family may live within the family and they may give discipline or care when situation arises. It is reported that the African American children are twice as much likely to be raised by an extended family, grandparent or single parent due to the frequent cases of divorce among the black families. Grandmothers are the frequent care givers for the abandoned or runaway children. The runaway children usually escape the violence or brutal treatment within the family. This can depict the dysfunctions

Microbial Physiology Essay Example | Topics and Well Written Essays - 500 words

Microbial Physiology - Essay Example This lag phase needed for organism to switch over to new carbon source (lactose). Utilization of glucose and lactose is tightly regulated at gene level. All the genes which are necessary for lactose utilization are arranged in sequence called Lac operon which is regulated by catabolic repression. The following events happen during overall process. -High level of glucose leads to higher energy production and hence higher ATP and lower AMP. In this scenario there is no free cAMP which binds with CAP( activator protein which facilitates RNA polymerase binding to promoter of Lac operon)and hence there is no expression of the downstream genes. -In case of lactose, there is high level of cAMP which binds with CAP and induces the expression of Lac operon. Similarly allolactose binds to repressor protein and inhibits its binding to operator site leads to expression of lac operon. b) Here if we closely look at the data and compare the viable count of aerobic culture it indicates reduction of 1.3X105 cfu/ml when bottle heated at 80C for 10 min. Similarly, for untreated bottle anaerobic viable count is 1.22X105 cfu/ml and if heating have similar effect than there will be complete killing of anaerobic bacteria and we will not get any viable count.

Contemporary Issues in Sport and Leisure Essay Example | Topics and Well Written Essays - 2500 words

Contemporary Issues in Sport and Leisure - Essay Example an as apathy or indifference – interpreted in parallel with the US’ approach to pressing modern-day issues; and 3) the globalization of soccer has been presented as a reflection of interdependency and unity among audiences, and among nations. The 202 Soccer World Cup has been acknowledged as the â€Å"greatest show on earth†, and it is said that the number of people who watch the event exceeds that for any other event (Sportsprof.com, 2005; Finance Professor.com, 2005; The Globalist, 2002; The Missouri Review, 2005). Moreover, it is a record-setter, establishing new breakthrough records every time it is staged every four years. However, only a handful of Americans will be among this number. The 2002 event will all the more boast of a large audience since Asia is among one of the most populated regions in the globe. The Globalist (2002) has estimated that for that year, pegging China at 350 million television sets, the total number of viewers may be just a little less than 3 billion. In the Sub-saharan region, there are only about 67 million television sets for a populace of around 530 million, but the zest with which Africans feel for the game would compel them to be tuned in to their radios instead. This passion for the game of other races and regions is placed in stark contrast against that of Americans, who have placed themselves in voluntary exclusion. It is interesting to note that soccer has been taken as a mirror of politics, where the US has taken a similar stance of apathy. It is said that soccer is more than just a game, but rather is a â€Å"microcosm of life itself†, along with its emotions and parallelisms. Further, some authors assert that this indifference indicates a more profound truth about world politics; that is, the United States has wilfully chosen to isolate itself in several critical areas, such as the struggle against global warming. The present study intends to assess the sociological aspects of the globalization of soccer in the

Swingline Stapler Essay Example for Free

Swingline Stapler Essay The Swingline Heavy Duty Stapler is an office supply, more so than a household item. A casual attempt to purchase a heavy duty stapler online (e.g., Amazon or eBay) makes it clear that there are numerous sellers of this product other than Swingline. Names like Stanley Bostitch, Sparco, Paper Pro, Hunt, Arrow, and Rapid, to name a few; and this list doesn’t include the models offered by the brick-and-mortar retailers like Office Max, Office Depot, and Staples. A more extensive search would only add to the list. Searching by brand within any of these online sites, however, pretty consistently reveals Swingline as the brand with the most choices; and more often than not, Stanley Bostitch falls into second on the list by product count. This anecdotal evidence hints that collectively, Swingline and Stanley Bostitch may very well have a strong share of a crowded market; oligopoly or monopolistic competition – it could go either way. Page 2 In terms of establishing the price for its heavy duty stapler, it is important to Swingline to price it reasonably close to its many substitutes. The competitors for this product provide a â€Å"range† of prices that serve as a boundary for Swingline to use in determining the price for its product – a feature of monopolistic competition. Based on the brand listing information, I would expect that a major competitor, Bostitch, is the one that Swingline pays most attention to – Swingline’s pricing decisions are somewhat dependent on the expected response of Bostitch. This is a characteristic of an oligopoly. In one sense, it can be argued that a heavy duty stapler is a standardized product – it serves one function. Due to this, there is not a significant amount of advertising done to try to differentiate the Swingline Heavy Duty Stapler from its competitors. Sellers in monopolistic competition and oligopoly both advertise to point out product differences, but standardized products exist primarily in oligopoly and perfect competition; so, in this regard, oligopoly seems to be the correct fit. On the other hand, attempts are made to give us the perception that the heavy duty staplers are indeed different. Paper Pro, for example, tells us this about one of their models: â€Å"Patented unique staple-driving technology provides the power to drive a staple through up to 65 sheets of paper with the press of just two fingers.† Yet a different Paper Pro brand tells us: â€Å"80% Easier than other heavy duty staplers†. Not to be outdone, Swingline counters with a pitch for its complementary product: â€Å"70 sheet staple capacity with Swingline Optima High Capacity staples†. Add different sizes, shapes, and colors, and a case can be made for product differentiation. This would seem to bring monopolistic competition back into the mix. Finally, on the surface, it seems that barriers to entry would be minimal. The production of a stapler does not require a high level of technology or a significant amount of financial capital. For a new seller to successfully penetrate the existing market, however, it seems they would need to have a price advantage due to the relatively standardized nature of the product. The ability of Swingline and Stanley Bostitch to match any new competitor’s â€Å"sale† price could effectively limit entry into this market. Based on this criterion, a case can be made for both monopolistic competition and oligopoly. In conclusion, it seems that characteristics of both monopolistic competition and oligopoly are present. This would put the market for heavy duty staplers somewhere in the middle of the competitive continuum: perhaps some oligopoly-type behavior by Swingline and Stanley Bostitch, but more like monopolistic competition overall. Given what I perceive to be as an inability to earn a positive economic profit over time, I’ll hang my hat on monopolistic competition.

Policies and Strategies for Market Failure

Policies and Strategies for Market Failure 1.0 Introduction Market failure refers to a situation whereby a freely-functioning market fails to allocate resources efficiently or optimally resulting in undesirable outcomes. Main examples of market failures include market power, externalities, unequal distribution of economic prosperity and inadequate public goods. Market power occurs when economic actors are able to exert considerable influence on market prices or the quantity of goods sold causing concentration of power and imperfect competition. Externalities are the uncompensated impact caused when the market disregard external costs of an economic activity on the well-being of a bystander. Externalities diverge social costs of benefit from the private optimum, leading to market failure as well. Unequal distribution of economic prosperity occurs as people are rewarded according to their ability in generating high income by producing things others are willing to pay off. Markets fail as significant differences in income and wealth leads to a wide gap in living standards between different groups in the economy. Market also fails when there are inadequate public goods which are not provided by the market mainly because of the free rider issue[1]. Hence public policies are required to correct market failure and increase the efficiency and productivity of the market. This ensures that the market is able to achieve the highest total social welfare, thus allowing a greater distribution of income and wealth and higher standard of living. 2.0 Public Policies Public policies are basically described as attempts taken by the government as an approach towards public issues and are commonly incorporated in legislations, regulations, decisions and actions (Venus 2010). Examples of public policies that can be taken to remedy market failure are legislations and regulations, implementation of taxes, subsidies and price controls. 2.1 Legislations and Regulations Legislation is a law which has been enacted by a governing body whereas regulation is a rule or restriction promulgated to control activities of businesses and consumers. There are two forms of regulations, namely industry regulation which prevents firms from gaining and exploiting excessive market control; and social regulation which protects consumers from social costs like externalities, socially undesirable goods and asymmetric information. Examples include price regulations or orders prohibiting collusive practices and monopolistic behaviours which help reduce concentration of market power. Legislations regarding the protection of the environment can also be enforced to reduce externalities like pollution. Legislations and regulation are also an example of command-and-control policies which are specifically targeted at reducing externalities. Command-and-control policies correct externalities by regulating behaviours directly, making them either required or forbidden. This is usually carried out by respective environmental agencies or commissions of a country, for instance the Environmental Protection Agency in United States which restrict levels of pollution and emissions emitted by factories and industries. 2.2 Taxes Taxes are a financial charge or levy imposed upon an individual or entity. Taxes can be used to regulate the market, redistribute income and reduce externalities through the manipulation of the demand and supply curves in the market. Even so, the tax imposed must be equal to the external cost or benefit to achieve the optimal quantity of output. A form of tax is environment levy which is imposed on firms to make them pay for the negative externalities they created. Taxes can also be imposed on undesirable goods to increase their price and reduce the quantity demanded or even used to compel people to pay for public goods to overcome the free rider issue. Similarly, taxes imposed in accordance with income earned helps reduce the market failure of income differentials. At the same time, taxes also helps increase governments revenue which can be spent on alternatives such as direct provision of public goods and services to compensate for the lack of collective goods. Tax is also part of market-based policies, developed specifically to reduce externalities. Market-based policies internalize externalities by providing incentives so that private decision makers will solve the externalities themselves. An example corrective taxes used to persuade private firms to take account of social costs that arise from negative externalities. Effect of tax on the market can be seen in Diag. 1. Tax imposed on a product would increase its price, effecting both consumers and producers. As production cost increases, the supply curve will shift to the left from S to S1 as producers would decrease the products supply. Since the price of the good is now more expensive, the quantity demanded by consumers would also decrease as seen in the change from Q2 to Q1. However, should the demand of the good be inelastic, taxes would fail to create any significant reduction in the demand of the good as shown in the diagram. For example, cigarettes. 2.3 Subsidies Subsidies, also known as negative tax, are financial assistance provided to businesses or economic sectors. Subsidies are used to assist small and potential firms by reducing their production cost so that they are able to compete against larger firms. They can also come in forms of loans or research and development grants to assist firms in their research to produce products of better quality. This reduces the barriers to entry and simultaneously increases competition among firms in the market besides effectively solving under consumption of resources, a positive externality. Furthermore, subsidies can increase socially desirable goods and assist in the redistribution of income. Even so, the subsidy imposed must be equal to the external cost or benefit to achieve the optimal quantity of output. Effect of subsidies on the market can be seen in Diag. 2. Subsidies imposed on a product would reduce its price, effecting both the consumer and producer. Production cost decrease as producers receive assistance and the supply curve will shift to the right from S to S1 as producers would increase supply. Since the price of the good has now reduced, the quantity demanded by consumers would also decrease as seen in the change from Q to Q1. 2.4 Price Controls Price control is a form of public policy where the government uses its law-making power to regulate prices of goods or services. The government may attempt to fix and enforce exact prices of a particular good or service sold or set a ceiling price or floor price (Johnson 2005). Government will then be able to assist consumers and producers with the impact it has on consumer demand and production of the good or service. Price ceiling is the legal maximum price which a good can be sold at but not any lower than that. An example would be rent control to help poor consumers which cannot afford housing. Price ceiling only takes effect when it is imposed below the equilibrium price as shown in Graph A as producers are forced to meet the maximum price set. However, this may result in shortages (Graph A) as the lower price will increase demand for the product. Price floor is the legal minimum price that can be charged but transactions at higher prices are prohibited. An example is the minimum wage laws which increases workers standard of living. Price floor only takes effect when it is imposed above the equilibrium price as shown in Graph B as suppliers have to raise their prices to meet the governments minimum price. However, a surplus may occur (Graph B) as the higher price will decrease consumers demand. 3.0 Conclusion As a conclusion, it can be seen that markets require public policies and government intervention in order to function effectively and achieve the objectives of producers, especially small and potential firms; and consumers. Market failure can be redressed through enforcement of legislations and regulations, taxes and subsidies and price control which are able to increase competitiveness, redistribute income and reduce externalities and socially undesirable goods. Although the implementation of these policies are useful in reducing negative impacts on the economy and basically have positive implications, there are also drawbacks. For instance, legislations and regulations are difficult and expensive to enforce whereas subsidies requires a government to first have sufficient financial means which prevents all countries from carrying them out efficiently. Price control also results in surplus and shortages of products they are imposed on in the long run which will also lead to inefficie nt allocation of resources. Hence, governments should always analyze the economy carefully and critically and carry out policies accordingly to prevent any further deteriorating of the economy. 4.0 References Books: Mankiw, N. G. 2008, Essentials of Economics, 5th Edn, South West Cengage Learning, United States Webster, N. 2005, Economics, 2nd Edn, Greg Eather, Adelaide Websites: Johnson, P. M. 2005, Price Controls: A Glossary of Political Economy Terms, retrieved 16 March 2010, The Smartacus Corportion 2009, Government Intervention: Price Ceiling, retrieved 17 March 2010, The Smartacus Corportion 2009, Government Intervention: Price Floor, retrieved 17 March 2010, Venus, D. 2010, What is Public Policy, retrieved 16 March 2010, Watkins, T. n.d., Impact of an Excise Tax on Subsidy on Price, retrieved 17 March 2010,

The Fall of the House of Usher by Edgar Allen Poe Essay -- Fall House

The Fall of the House of Usher by Edgar Allen Poe Symbols and imagery of horror and death in a story touch the reader like a fingertip against a chord and can make the heart resonate with fear and woe as the suspended lute with tone. The verbal illustration that is used in the opening phrase in Edgar Allen Poe's "The Fall of the House of Usher" is as strong as the imagery of dismay utilized throughout the rest of the story, like the dark and gloomy house. The vivid colors and visuals in the story not only force the reader to picture the surroundings in his or her mind, but also contain the hidden connotations of gravity and despair. The inclusion of sounds, like the "distinct, hollow, metallic, and clangorous, yet apparently muffled reverberation," (Poe 27) and aural references to musical instruments, such as the lute quote by De BÃ ©ringer suggests that the reader experience the mood of the tale in a more auditory and sensory appealing fashion. The mood of the story is one of horror that is set up by visual and aural stimulation a nd is well used in the tale of Roderick Usher. As in many of Poe's stories, the colors and images that describe the setting and characters are not only visually stimulating but carry dark connotations that give the story‚s horror more depth and feeling. The tale of the narrator‚s trip to the House of Usher begins with an eerie depiction of the building and its surroundings, the overview of the setting, "a scene in which decay and death are the presiding elements" (P.Quinn 85). In "A Key to the House of Usher," Darrel Abel notes that the description of the setting serves two purposes: ...to suggest a mood to the observer which makes him properly receptive to the horrible ideas which grow in his... ...g of fright and shock. "If ever a mortal painted an idea, that mortal was" (21) Edgar Allen Poe. Works Cited: Abel, Darrel. "A Key to the House of Usher." Twentieth Century Interpretations of The Fall of the House of Usher. Ed. Thomas Woodson. Englewood Cliffs, NJ: Prentice Hall, 1969. 43-55. Gordon, Caroline and Tate, Allen. "View Points." Twentieth Century Interpretations of The Fall of the House of Usher. Ed. Thomas Woodson. Englewood Cliffs, NJ: Prentice Hall, 1969. 27-30. Poe, Edgar Allen. "The Fall of the House of Usher." The Prentince Hall Anthology of Science Fiction and Fantasy. Ed. Gary G. Roberts. Upper Saddle River, NJ: Prentice Hall, 2001. 16-28. Quinn, Patrick F. "That Spectre in My Path." Twentieth Century Interpretations of The Fall of the House of Usher. Ed. Thomas Woodson. Englewood Cliffs, NJ: Prentice Hall, 1969. 82-90.